Yen stronger on Russian remarks

| October 16, 2006 | 0 Comments

The Japanese yen strengthened on Monday after the central bank in Russia said it has begun purchasing the currency as part of its reserves. The first deputy chairman of the Russian bank said at a conference in Moscow that it wants to diversify. By mid-afternoon in New York, the yen had added 0.3 percent against both the US dollar and the euro, to ¥119.25 and ¥149.26 respectively.

Sterling was stronger as well on new data indicating that the UK housing market is growing, which tended to confirm most analysts’ opinions that the Bank of England will raise interest rates again in November. The Rightmove housing survey showed that house prices rose 2 percent in October, which put the annual inflation figure for houses to 11.5 percent. The UK currency was up 0.2 percent to $1.8602 versus the US dollar, while it also gained 0.2 percent to £0.6726 in relation to the euro.

The US dollar held on to Friday’s gains versus the euro, staying steady at $1.2510 against the shared currency. Meanwhile, the Australian dollar added 0.2 percent to $0.7527 in relation to the greenback. Many observers believe that the Reserve Bank of Australia will raise interest rates in November.

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